Bitcoin Volatility Sparks Rare Dual Liquidation of Long and Short Positions

Crypto markets delivered a harsh reminder of the risks of leverage over the past 24 hours, with more than $625 million in positions liquidated as violent price swings punished traders on both sides of the market.

Data from CoinGlass showed that around 150,000 traders were forced out of positions, with liquidations split almost evenly between bullish and bearish bets. Long positions accounted for about $306 million in losses, while roughly $319 million in short positions were wiped out — a rare balance that underscored how abruptly prices reversed during the session.

The largest single liquidation was recorded on Hyperliquid, where a $40.22 million ETH-USD position was forcibly closed. The platform also led all venues in total liquidations, with approximately $220.8 million erased. More than 72% of that figure came from short positions, indicating that traders were heavily positioned for further downside just as prices turned higher.

Major centralized exchanges also saw significant activity. Binance posted around $120.8 million in liquidations, skewed toward long positions, while Bybit recorded nearly $95 million, with longs again slightly outweighing shorts.

The liquidation wave unfolded alongside sharp intraday moves in bitcoin, which briefly slipped below $88,000 before rebounding toward the $90,000 level.

Those swings came amid elevated macro uncertainty, driven by shifting expectations around U.S. trade policy, volatility in bond markets, and market reaction to comments from U.S. President Donald Trump during his appearance at the World Economic Forum in Davos.

For leveraged traders, the combination proved punishing. Early downside momentum triggered long liquidations that accelerated the decline. As prices quickly snapped back, short positions were caught offside, unleashing a second wave of forced selling in the opposite direction. The result was a classic whipsaw that left both bulls and bears absorbing losses.

Two-way liquidation events like this typically emerge when markets are caught between competing narratives, with no clear directional trend and little room for error. In this case, fast-moving macro headlines drove abrupt sentiment shifts, while leverage amplified each move.

Looking ahead, traders will be watching whether volatility subsides or continues to flare. Until clearer direction emerges, the latest liquidation episode suggests caution — rather than aggressive leverage — may be the more prudent approach.